79R4822 KSD-D

By:  Ellis                                                        S.B. No. 1399



A BILL TO BE ENTITLED

AN ACT

relating to the portion of designated tuition required to be set 
aside to provide student financial assistance at institutions of 
higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 56.011(a), Education Code, is amended to 
read as follows:
	(a)  The governing board of each institution of higher 
education shall cause to be set aside not less than 20 percent of 
any amount of tuition charged to a resident undergraduate student 
under Section 54.0513 in excess of $46 per semester credit hour.  
The funds set aside under this section by an institution shall be 
used to provide need-based financial assistance for resident 
undergraduate students enrolled in the institution.
	SECTION 2.  Section 56.012(a), Education Code, is amended to 
read as follows:
	(a)  The governing board of each institution of higher 
education shall cause to be set aside not less than 15 percent of 
any amount of tuition charged to a resident student enrolled in a 
graduate or professional degree program under Section 54.0513 in 
excess of $46 per semester credit hour.  The funds set aside under 
this section by an institution shall be used to provide need-based
financial assistance for resident students enrolled in graduate and 
professional degree programs at the institution.
	SECTION 3.  Section 56.465(a), Education Code, is amended to 
read as follows:
	(a)  The governing board of each institution of higher 
education shall cause to be set aside five percent of the amount of 
the tuition charged to a resident undergraduate student at the 
institution under Section 54.0513 in excess of $46 per semester 
credit hour.  The amount of a student's tuition set aside under this 
subsection is in addition to [considered a part of] the amount 
required to be set aside from that tuition under Section 56.011.
	SECTION 4.  The changes in law made by this Act apply only to 
financial aid awarded for a semester or term that begins on or after 
the effective date of this Act, and do not affect a student's right 
to receive financial aid awarded before the effective date of this 
Act for any part of the 2005-2006 academic year.
	SECTION 5.  This Act takes effect September 1, 2005.